Investor AB Class A · OMXSTO:INVE_A
Investor AB Class A — FY2019 Earnings Presentation
34 slides from Investor AB Class A's earnings presentation, 2020
Slide 1: Year-End Report 2019
Year-End Report 2019 Johan Forssell, CEO Helena Saxon, CFO 1
Slide 2: 2019 Global Economy
i. a : oO a 2019 Global Economy , eer Government 10-year bond yields Equity market indices (not adjusted 2015 - 19 for dividend yield) 3.5% 2015-19, indexed 100 200 190 2.5% 180 ® eA 170 2 (A a 3.0% 15% 140 1.0% in ” mars cans 40 —— 00% + — M2015 2016 2017 2018 2019 2020 Jan apr jul okt Jan apr jul
Slide 3: Total Shareholder Return, 2019
XX 40% Total Shareholder Return, 2019 Total avkastning 2019 AB Investor XX 35% Total Shareholder Return, 2019 TSR Marknaden SIXRX 3
Slide 4: 2019 sales and EBITA growth in major subsidiaries
XX 13% 2019 sales growth, of which 4% Total avkastning 2019 currency, organic in constant XX 18% 2019 EBITA growth TSR subsidiaries in major Marknaden in major subsidiaries 4
Slide 5: Key activities in 2019
Key activities in 2019 People EQT AB Electrolux ABB Strategic Cash flow Several new listed on proposal to list SEK 4.3bn acquisitions Strong CEOs and NASDAQ Professional In Laborie and contribution invested board Stockholm Piab from all members business areas 5
Slide 6: Pay a steadily rising dividend
+ 8% DPS 16 Pay a steadily rising dividend XX XX 14 12 10 8 6 Total avkastning 4 2019 TSR Marknaden 2 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019p 6
Slide 7: Q4 2019 Highlights
Q4 2019 Highlights 6% 7% ABB 6% Strategic Adjusted NAV TSR SEK 1.0bn Adjusted EBITA acquisitions growth (SIXRX +10%) invested growth in major In Laborie and (SIXRX +10%) Piab subsidiaries 7
Slide 8: Patricia Industries
Patricia Industries 8
Slide 9: Patricia Industries – development in Q4 2019
Patricia Industries – development in Q4 2019 -3% - Earnings growth and good cash flow impacted positively value change (excl. cash) - However, multiple contraction and currency impacted negatively 9
Slide 10: Patricia Industries – value change (excluding cash), 2019
Patricia Industries – value change (excluding cash), 2019 >2/3 driven by 23% earnings growth & cash flow Value change 2019 <1/3 driven by multiples 10
Slide 11: Patricia Industries – operational development Q4 2019
Patricia Industries – operational development Q4 2019 115 23% SEK bn of tot. adjusted assets 2 percent organic sales growth, % 3% 8% 8% 5% 4% 3% Reported EBITA 1% growth -2% 6% Adjusted EBITA growth -9% Grand Laborie Braun Permobil Vectura Mölnlycke Sarnova Piab Group Ability 11
Slide 12: Mölnlycke – advanced wound care and surgical solutions
A provider of advanced products for treatment and prevention of wounds and single-use surgical solutions Q4 2019 EUR m. % • Organic sales growth +1 percent in constant currency 450 35 • Wound Care +1 percent 400 30 • Surgical +2 percent driven by Surgical Trays 350 25 and Antiseptics 300 250 20 200
Slide 13: Permobil – mobility and seating rehab solutions
A provider of advanced mobility and seating rehab solutions Q4 2019 SEK m. % • Organic sales growth +4 percent in constant currency 1 400 25 1 200 20 • Power and Manual grew, Seating & Positioning 1 000 declined slightly. North America and APAC grew, 15 800 EMEA flat 600 10 400 • EBITA margin declin
Slide 14: Laborie – urologic and gastrointestinal
A provider of innovative capital equipment and consumables for the diagnosis and treatment of urologic and gastrointestinal disorders Q4 2019 Negative impact USD m. from transaction- related costs % • Organic sales growth +8 percent in constant currency 60 40 35 50 30 • Adjusted for USD 6m acquisiti
Slide 15: Laborie - Clinical Innovations
Laborie - Clinical Innovations • Provider of single-use products for hospital labor & delivery and neonatal intensive care units • Market-leading positions in segments with favorable long-term growth dynamics • High-risk births expected to increase • Under-penetration in Emerging Markets • 2019 sale
Slide 16: BraunAbility – wheelchair accessible vehicles
A manufacturer of wheelchair accessible vehicles and wheelchair lifts Q4 2019 USD m. % • Organic sales growth +5 percent in constant currency 250 12 10 200 • Strong growth in Commercial WAVs, good growth in Consumer WAVs, Lifts down slightly 150 8 6 100 • EBITA margin improved, driven by operating 4
Slide 17: Piab – gripping and moving solutions
A provider of gripping and moving solutions for automated manufacturing and logistics processes Q4 2019 SEK m. Negative impact % • Organic sales growth -9 percent in constant currency from transaction- 400 related costs 40 350 35 • Americas grew slightly, Europe and APAC declined. 300 30 Moderate gr
Slide 18: Piab – TAWI Group
Piab – TAWI Group • TAWI - a leading manufacturer of smart lifting solutions with global reach • SEK 350m sales in 2019 with good profitability • Strong sales growth and profitability • E-commerce logistics one of several key growth drivers 18
Slide 19: Sarnova – specialty healthcare distributor
A specialty distributor of healthcare products in the U.S. Q4 2019 USD m. Negative impact % • Organic sales growth -2 percent in constant currency, from Ambu transition 180 18 +3 percent adjusted for Ambu-related impact 160 16 140 14 • Mid-single growth in Emergency Preparedness, Acute 120 12 100 10
Slide 20: Three Scandinavia – mobile voice and broadband
A provider of mobile voice and broadband services in Sweden and Denmark Q4 2019 Negative impact SEK m. from VAT rulings % • Subscription base +53,000 Negative impact from VAT rulings 3 500 50 3 000 40 • Service revenue +5 percent excluding previously 2 500 30 communicated Swedish VAT ruling 20 2 000
Slide 21: Investments in EQT
Investments in EQT 21
Slide 22: Investments in EQT
Investments in EQT 37 7% SEK bn of tot. adjusted assets 11% Total value change constant currency (9% reported) 2.7 SEK bn Net cash flow Q4 24% 1% Value change, constant Total Return EQT AB currency, investments in EQT funds 22
Slide 23: Average annual total shareholder return
Average annual total shareholder return As of December 31, 2019 Percent 40 35 30 25 20 15 10 5 0 1 year 5 years 10 years 20 years Investor B SIXRX Return requirement 23
Slide 24: Year-End Report 2019
Year-End Report 2019 Helena Saxon, CFO 24
Slide 25: 10-year Net Asset Value development
10-year Net Asset Value development SEK bn 500 450 485 Adjusted NAV 400 350 421 Reported NAV 300 250 200 150 100 50 0 10 11 12 13 14 15 16 17 18 19 25
Slide 26: Listed Companies Q4 2019 Summary
Listed Companies 345 69% SEK bn of tot. adjusted assets Q4 2019 Summary QTD, SEK bn % • Total contribution to NAV SEK 30bn 24.3 16 25 • Listed Companies TSR 9%, SIXRX 10% 14 20 16.6 Husqvarna 2% 12 Wärtsilä 3% 15 Electrolux 3% 10 11.5 Saab 4% 9.1 Atlas Copco 22% 8 6.9 10 Sobi 5% 6.2 Nasdaq 6% 6 2.9
Slide 27: Patricia Industries – value change (excluding cash), Q4 2019
Patricia Industries – value change (excluding cash), Q4 2019 SEK bn 5 -6 Q4 growth -3% -3 -4 Performance Multiples FX + other Net increase/ and cash flow decrease 27
Slide 28: Patricia Industries – change in Estimated Market Values
Patricia Industries – change in Estimated Market Values Q4 2019 Summary Estimated market value change Distributions/proceeds 1 368 629 80 1 667 -3% 140 313 6 494 136 381 value (7 328) (1 534) decrease (682) (277) (208) excl. cash (2 142) (2 000) Total NAV Three Sarnova Vectura Grand Mölnlycke Pemobi
Slide 29: Major Drivers of Estimated Market Values Q4 2019
Major Drivers of Estimated Market Values Q4 2019 Est. market value Company change Q4 2019 vs. Major drivers Q3 2019 Lower multiples, currency impacted negatively, partly SEK -7.3bn offset by cash flow. SEK 2.6bn distribution Lower multiples, profit impacted negatively, partly SEK -1.5bn offset by ca
Slide 30: Financial Investments
Financial Investments Five largest financial Q4 2019 Summary investments, December 31, 2019 • The realization of the portfolio continues • SEK 1.6bn cash proceeds received from exits of NS Focus, HireVue and Acquia ~4.3 SEK bn Value December 31, 2019 30
Slide 31: Financial Position as of December 31, 2019
Financial Position as of December 31, 2019 Percent 15 • Leverage 2.8% (6.1% Dec 31, 2018) 10 • Net debt SEK 12.0bn • Gross cash SEK 24.9bn 5 • Average maturity of the debt portfolio 11.1 years 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 15 15 15 15 16 16 16 16 17 17 17 17 18 18 18
Slide 32: Strong cash flow generation gives great financial flexibility
Strong cash flow generation gives great financial flexibility Cash flow 2015-2019 Sources Uses LISTED COMPANIES Investments in EQT Net other ~85 ~77 SEK bn SEK bn LISTED COMPANIES DIVIDEND PAID Net debt approximately SEK 8bn lower, leverage down from 7.3 percent to 2.8 percent 32 *Including divestme
Slide 33: We create value for people and society
We create value for people and society by building strong and sustainable businesses
Slide 34: Financial Calendar & Contact Details
Financial Calendar & Contact Details Event Date Interim Management Statement January – March 2020 April 22, 2020 Interim Report January – June 2020 July 17, 2020 Interim Management Statement January-September 2020 October 19, 2020 Contact Details Viveka Hirdman-Ryrberg +46 70 550 3500 Head of Corpor